Carmike theaters wait and see about impact of AMC acquisition

Carmike movie theaters have been acquired by AMC theaters in a just-confirmed $1.1 billion deal. Governor's Square in Clarksville is expecting little or no change, as far as moviegoers are concerned.(Photo: Ayrika Whitney / The Leaf-Chronicle)Buy Photo

Middle Tennessee communities where Carmike movie theaters have had a presence are waiting to see whether noticeable changes will occur in theater operations after the just-confirmed $1.1 billion corporate acquisition of Carmike by AMC Theatres.

At least one mall operator in the Midstate — Governor's Square in Clarksville — is expecting little or no change, as far as moviegoers are concerned.

"While I haven't been able to reach anyone who may have specific knowledge of AMC's intentions, here's what I do know: Theater chains generally don't tinker with a business model that's successful. The theater at Governor's Square is quite successful," said Joe Bell, spokesman for Youngstown, Ohio-based Cafaro Co., parent of the Clarksville regional mall.

AMC is saying little about what to expect. "AMC will not make any decisions about Carmike locations until after the transaction closes, which we anticipate to occur near the end of 2016," said company spokeswoman Erin Gregory. "In the interim, it is up to Carmike management."

Other Midstate Carmike locations include the Thoroughbred 20 in Franklin, Wynnsong 16 in Murfreesboro, Hickory 8 in Antioch, Bellevue 8 in Nashville, Wynnsong 10 in Madison, Cinema 1 in Springfield and Carmike 12 in Spring Hill.

Several days of growing speculation ended late last week in confirmation that AMC will acquire competitor Carmike in a $1.1 billion deal that will make the combined company the largest movie theater chain in the country.

AMC CEO Adam Aron said the acquisition will help AMC expand its geographic reach and cater to millions of new customers.

AMC has 387 theaters, primarily concentrated in larger markets, including Los Angeles, Chicago and New York.

Carmike operates 276 theaters, generally in midsize communities. The new company would have more theaters than the current leader, Regal Entertainment Group, which has 572 theaters.

AMC will pay $30 per share in cash to acquire Carmike's outstanding shares. It's financing the deal with existing liquidity, cash on hand and incremental debt.

The deal is expected to close by the end of the year.

AMC says it plans to bring its higher-end experience, such as premium food and drinks and plush recliners, to Carmike locations. AMC "gets to extend the reach of our innovative, guest-experience strategies to further transform the movie-going experience for millions of new guests," Aron said in a company statement.

Carmike CEO David Passman also said the two chains have limited overlap.

"By joining with AMC, we are bringing together two highly complementary theater footprints and a shared commitment to service and innovation, positioning the combined company to deliver an even more compelling movie-going experience in many more locations across the country," he said in a statement.

USA TODAY contributed to this report. This is a developing story.

Reach Business Editor Jimmy Settle at 931-245-0247 and on Twitter @settle_leaf.